2Q13 & 1H13

Results Presentation

8 August 2013

DisclaimerThe presentation is dated the day it is given. The delivery of this presentation shall not,under any circumstances, create any implication that there has been no change in theaffairs of the Company since such date. The third party information and statistical data inthis presentation have been obtained from sources the Company believes to be reliable butin no way are warranted by the Company as to accuracy or completeness. Thispresentation may not contain all material information concerning the Company and theinformation set forth in this material is subject to change without noticeinformation set forth in this material is subject to change without notice.

These materials contain forward-looking statements based on the currently held beliefsand assumptions of the management of the Company, which are expressed in good faithand assumptions of the management of the Company, which are expressed in good faithand, in their opinion, reasonable. Forward-looking statements involve risks, uncertaintiesand other factors, some of which are beyond the Company’s control and no assurance ismade as to whether such future events will occur. Actual results, financial condition,

f hi t f th C lt diff t i ll f thperformance or achievements of the Company results may differ materially from thoseexpressed or implied by such forward-looking statements.

This presentation is strictly not to be distributed without the explicit consent of Company’sThis presentation is strictly not to be distributed without the explicit consent of Company smanagement under any circumstances.

2

2Q13 Financial HighlightsTAA• Revenues:

– THB 5,360 million (+21% YoY)

O ti fit (EBIT)THB million 2Q13 2Q12 Chg %

TAA

• Operating profit (EBIT):– THB 686 million (+133% YoY)– Excluding FX, THB 554 million

( +122% YoY)

Revenues 5,360 4,433 +21%

Operating profit 686 294 +133%( +122% YoY)

• Net profit:– THB 499 million (+109% YoY)

Net profit 499 238 +109%

– Excluding FX, THB 367 million ( +90% YoY)

• Margins:

Operating profit (ex-FX)

554 249 +122%

Net profit (ex-FX) 367 193 +90%• Margins:– Net profit 9% (+4 ppts) vs. 7%

(+2 ppts) excluding FX– EBIT 13% (+6 ppts)

p ( )

* FX of THB 132 million in 2Q13 vs THB 45 million in 2Q12

AAVEBIT 13% (+6 ppts)– EBITDA 14% (+7 ppts) AAV

THB million Consolidated 2Q13

Consolidated 2Q12*

• Revenues:– THB 5,360 million

2Q13 2Q12

Revenues 5,360 3,572

Net profit (parent) 265 121**

3

• Net profit (parent):– THB 265 million (+120% YoY

excluding gain on fair value)

Net profit (parent) 265 121

* Full consolidation from May 2012 onwards** Excluded gain on fair value of equity interests THB 14,677 million

1H13 Financial Highlights

• Revenues:– THB 11 389 million (+22% YoY)

THB million 1H13 1H12 Chg %

Revenues 11,389 9,301 +22%

TAATHB 11,389 million (+22% YoY)

• Operating profit (EBIT):– THB 1,648 million (+79% YoY)

Operating profit 1,648 922 +79%

Net profit 1,238 716 +73%

• Net profit:– THB 1,238 million (+73% YoY)

• Margins:– Net profit 11% (+3 ppts)– EBIT 14% (+4 ppts)– EBITDA 16% (+6 ppts)

AAV THB million Consolidated Consolidated

• Revenues:– THB 11,389 million

AAV Consolidated 1H13

Consolidated 1H12*

Revenues 11,389 6,055

• Net profit (parent):– THB 662 million (+82% YoY

excluding gain on fair value)

Net profit (parent) 662 364**

* Full consolidation from May 2012 onwards** Excluded gain on fair value of equity interests THB 14 677 million

4

g g ) Excluded gain on fair value of equity interests THB 14,677 million

2Q13 Key Highlights• Growing load factor of 82% (+ 3 ppts)

• Passengers carried up 25% beating 20%Passengers carried up 25% beating 20%capacity growth

• Average fare soften by 4% from moredomestic expansion, still RASK up 2%

• CASK down 3% from lower fuel price whileCASK f l 5% i l f b dCASK ex-fuel up 5% mainly from brandlicense, yet CASK ex-fuel down 2% QoQfrom lower marketing expenses

• Improved DMK efficiencies with OTP 96%

• 1 aircraft added in 2Q131 aircraft added in 2Q13

• Strong TAA’s cash balance of THB 7.6 billion(net cash position)

5

FleetConfirmed expansion plan:Fleet profile:

• 29 aircraft as at 1H13– 27 aircraft at Don Mueang hub

Confirmed expansion plan:Fleet profile:

• 6 more deliveries in 2H13 (Jul, Sep, Oct, Nov)g

– 2 aircraft at Phuket hub

• All A320s with single-class 180 seats

– 2 operating leases– 4 finance leases

gcapacity

• Average age of 3 years 2 months (1H13)

• Confirmed 8 new deliveries in FY2014F

• 1H13: – 25 operating leases– 4 finance leases

Unit: Aircraft5-year fleet plan:

+6BoeingAirbus

Unit: Aircraft

+8+8 +6

+6+6

12 123 8 12

19 22 27 35 43 49 55 61

6 9 12 12 8 819

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013E 2014E 2015E 2016E 2017E6

Route NetworkFl i t 30 d ti ti ( t 1H13)• Flying to 30 destinations (as at 1H13)

– 18 international– 12 domestic

• Flying 178 flights daily (as at 1H13)

• Expansion strategy:– New cities in southern China and Indochina– Increasing market share in all domestic routes

Re introduce Chiang Mai hub in Dec 2013 to cater• Re-introduce Chiang Mai hub in Dec 2013 to cater potential growth

Route movements: 1H13 2H13 Outlook

Additional frequencies: • Bangkok – Mandalay (4x to daily)• Bangkok – Phnom Penh (2nd)• Bangkok – Nakhon Si Thammarat (3rd)

Bangkok Hat Yai (8th)

• Bangkok - Chongqing (2nd) (3Q13 )• Bangkok – Kuala Lumpur (4th) (3Q13)• Bangkok – Singapore (6th) (3Q13)

Bangkok Chiang Mai (11th) (4Q13)• Bangkok – Hat Yai (8th)• Bangkok – Krabi (6th)• Bangkok – Chiang Mai (10th)• Chiang Mai – Hat Yai (2nd)

• Bangkok – Chiang Mai (11th) (4Q13)• Bangkok – Krabi (7th) (4Q13)

• Bangkok – Hong Kong (3rd) • Bangkok – Wuhan (2nd) • Bangkok – Phuket (10th, 11th ,12th)

7

New destinations: • Bangkok – Siem Reap (Oct)• Bangkok - Naypyidaw (Oct)• New cities in China & in domestic

Operational Highlights

International Domestic

Maintain strong load factorPassengers carried up YoYMillion passengers

5 0+23%

82%83%

84%

1 4 2 4 3.00.8 1.01.6

2.04.0

5.0

1.9 2.4+25% 79%

1.1 1.4 2.4

2Q12 2Q13 1H12 1H13 2Q12 2Q13 1H12 1H13

Continue expanding ASK MillionBaht per pax

Softer average fare YoY

5,1336,0761,962 1,877 1,932 1,938 +18%-4% +0.3%

2,593 3,064

5,133 +18%

2Q12 2Q13 1H12 1H138

2Q12 2Q13 1H12 1H13* Included fuel surcharge

Ancillary Revenue

311 335 333 346% of revenue% of revenue

8121,355 1,726

14% 15% 15% 15%

+35%+27%

602 812

2Q12 2Q13 1H12 1H13 2Q12 2Q13 1H12 1H13

Million Baht Baht per pax

Ancillaries 2Q13 1H13Ancillaries 2Q13 1H13

Ancillary income growth +35% YoY +27% YoY

Ancillary per pax growth +8 % YoY +4% YoY

Ancillary updates:

Ancillary as % of revenue 15% 15%

Ancillary updates:• New products: EMS super speed, “Fly Thru”

(pipeline)

9

Cost Structure2Q13 2Q12 Change

Cost per ASK (THB) 1.61 1.66 -3%p ( ) 1.61 1.66 3%Cost per ASK ex-fuel (THB) 0.94 0.90 +5%

TAA’ k t j t f l iTAA’s average market jet fuel price (USD per barrel) 118 131 -13

Cost breakdown 2Q13:

Guest service d Dep & amort Others, 1%

• CASK down from lower jet fuelprice YoY

F l 42%Ramp and

airport

and distribution,

5%

Dep. & amort., 2%

Others, 1%

SG&A, 6%price YoY

• CASK ex-fuel up 5% mainlyFuel, 42%

Repair and maintenance,

airport operation, 9% from brand license fees yet

down 2% QoQ from lowermarketing expenses

Aircraft lease

Staff, 11%

9%

10

Aircraft lease, 16%

2013 Key Points…• 6 more aircraft deliveries in 2H13 in which

all financing for both types of leases havebeen secured

• Confirm 8 aircraft addition in 2014

• Continue to focus on southern China,Indochina and domestic, strengtheningnetwork and feeder connectivity

• Target 10 million passengers and 82%load factor

• Maintain average fare at 2012 level despitestrong capacity growth

• Boost up ancillary revenue to 2011 level

C i i i i ffi i i DMK• Continue maximizing efficiencies at DMK

• Strong cash balance (1H13: THB 7.6 billion)

• Continue to tap tourism growth11

Appendix

12

2Q13 TAA Statement of Comprehensive IncomeUnit: THB million 2Q13 2Q12 Change %Unit: THB million 2Q13 2Q12 Change %

Revenues 5,360 4,433 +21%

Operating costs (4 627) (4 111) +13%Operating costs (4,627) (4,111) +13%

Other income & gain on FOREX 274 160 +71%

Total SG&A (321) (188) +71%Total SG&A (321) (188) +71%

EBIT 686 294 +133%

Finance costs (36) (0) +22138%Finance costs (36) (0) +22138%

Income tax (151) (56)* +170%

Net profit/ 499 238 +109%Net profit/ Total comprehensive income

499 238 109%

Earnings per share (THB) 11.4 5.8 +98%

Net profit margin 9% 5% +4 ppts

EBIT margin 13% 7% +6 ppts

EBITDA margin 14% 7% +7 ppts

EBITDAR margin 29% 25% +4 ppts

13* Effect from deferred income taxes; refer to TAA’s notes to interim financial information no. 4.1 and 10

1H13 TAA Statement of Comprehensive IncomeUnit: THB million 1H13 1H12 Change %Unit: THB million 1H13 1H12 Change %

Revenues 11,389 9,301 +22%

Operating costs (9 362) (8 141) +15%Operating costs (9,362) (8,141) +15%

Other income & gain on FOREX 370 260 +42%

Total SG&A (749) (497) +51%Total SG&A (749) (497) +51%

EBIT 1,648 922 +79%

Finance costs (64) (6) +934%Finance costs (64) (6) +934%

Income tax (346) (200)* +73%

Net profit/ 1,238 716 +73%Net profit/ Total comprehensive income

1,238 716 73%

Earnings per share (THB) 28.4 17.6 +61%

Net profit margin 11% 8% +3 ppts

EBIT margin 14% 10% +4 ppts

EBITDA margin 16% 10% +6 ppts

EBITDAR margin 29% 27% +2 ppts

14* Effect from deferred income taxes; refer to TAA’s notes to interim financial information no. 4.1 and 10

TAA Statement of Financial PositionUnit: THB million 1H13 2012Unit: THB million 1H13 2012

Cash and equivalents 7,592 6,169

Total assets 14 894 10 781Total assets 14,894 10,781

Deferred revenues 3,935 3,582

Finance lease liabilities 3 925 1 920Finance lease liabilities 3,925 1,920

Deferred tax liabilities, net 77 28*

Total liabilities 9 760 6 885Total liabilities 9,760 6,885

Paid-up share capital 436 436

Premium on share capital 2,629 2,629Premium on share capital 2,629 2,629

Retained earnings 2,069 832*

Total shareholders’ equity 5,134 3,896q y , ,

* Effect from deferred income taxes; refer to TAA’s notes to interim financial information no. 4.1

15

2Q13 TAA Key Operational Statistics2Q13 2Q12 Change %2Q13 2Q12 Change %

Passengers carried (million) 2.4 1.9 +25%

Capacity (million seats) 2 9 2 5 +20%Capacity (million seats) 2.9 2.5 +20%

Load factor 82% 79% +3 ppts

RPK (million) 2 551 2 044 +25%RPK (million) 2,551 2,044 +25%

ASK( million) 3,064 2,593 +18%

No of stages flown 16 358 13 624 +20%No. of stages flown 16,358 13,624 +20%

Average stage length (km) 1,041 1,057 -2%

Average fare (THB) 1,877 1,962 -4%Average fare (THB) 1,877 1,962 4%

RASK (THB) 1.75 1.71 +2%

CASK (THB) 1.61 1.66 -3%( )

CASK ex-fuel (THB) 0.94 0.90 +5%

16

1H13 TAA Key Operational Statistics1H13 1H12 Change %1H13 1H12 Change %

Passengers carried (million) 5.0 4.0 +23%

Capacity (million seats) 5 9 4 9 +20%Capacity (million seats) 5.9 4.9 +20%

Load factor 84% 83% +1 ppt

RPK (million) 5 165 4 218 +22%RPK (million) 5,165 4,218 +22%

ASK( million) 6,076 5,133 +18%

No of stages flown 32 812 27286 +20%No. of stages flown 32,812 27,286 +20%

Average stage length (km) 1,029 1,045 -2%

Average fare (THB) 1,938 1,932 +0.3%Average fare (THB) 1,938 1,932 0.3%

RASK (THB) 1.87 1.81 +3%

CASK (THB) 1.66 1.68 -1%( )

CASK ex-fuel (THB) 0.95 0.94 +2%

17

2Q13 AAV Statement of Comprehensive IncomeUnit: THB million C lid t d C lid t dUnit: THB million Consolidated

2Q13Consolidated

2Q12*

Revenues 5,360 3,572

Operating costs (4,632) (3,431)

Other income & gain on FOREX 275 143

Gain on fair value of held equity interests - 14,677

Total SG&A (329) (149)

EBIT 673 14,811

Finance costs (36) (0)

Income tax (151) (43)**

Net profit 486 14,768

Net profit attributable to parent 265 14,797

Non-controlling interests 221 (29)

Total comprehensive income 486 14,768

Earnings per share (THB) 0 0546 3 3845Earnings per share (THB) 0.0546 3.3845

18* Full consolidation from May 2012 onwards** Effect from deferred income taxes; refer to AAV’s notes to interim financial information no. 4.1 and 12

1H13 AAV Statement of Comprehensive IncomeUnit: THB million C lid t d C lid t dUnit: THB million Consolidated

1H13Consolidated

1H12*

Revenues 11,389 6,055

Operating costs (9,373) (5,487)

Other income & gain on FOREX 371 194

Gain on fair value of held equity interests - 14,677

Total SG&A (765) (308)

EBIT 1,621 15,131

Finance costs (64) (3)

Income tax (346) (117)**

Net profit 1,212 15,011

Net profit attributable to parent 662 15,040

Non-controlling interests 550 (29)

Total comprehensive income 1,212 15,011

Earnings per share (THB) 0 1365 3 5506Earnings per share (THB) 0.1365 3.5506

19* Full consolidation from May 2012 onwards** Effect from deferred income taxes; refer to AAV’s notes to interim financial information no. 4.1 and 12

Unit: THB million Consolidated 1H13 Consolidated 2012

AAV Statement of Financial PositionUnit: THB million Consolidated 1H13 Consolidated 2012

Cash and equivalents 7,600 6,174

Intangible assets 14 868 14 869Intangible assets 14,868 14,869

Goodwill 8,825 8,825

Total assets 38,738 34,609Total assets 38,738 34,609

Deferred revenues 3,935 3,582

Finance lease liabilities 3,925 1,920

Deferred tax liabilities, net 3,079 3,034*

Total liabilities 12,771 9,892

Paid-up share capital 485 485

Premium on share capital 2,600 2,600

Other component of equity - (37)*

Retained earnings 15,873 15,211*

Equity attributable to parent 18,958 18,259

Non-controlling interests 7,009 6,459*

l h h ldTotal shareholders’ equity 25,967 24,718

20* Effect from deferred income taxes; refer to AAV’s notes to interim financial information no. 4.1